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Outsourcing? What will people say?
You know what? It really does not look well: Public opinion does not like outsourcing. That has also been confirmed by many surveys, e.g. the latest survey by Capgemini: A majority of executives (79%) recognize that outsourcing may have a poor public perception as the survey says
How do the executives react on the poor public perception of nearshore/offshore outsourcing? What is the reason for outsourcing to have such an image?
Let’s start with the second question first. Every economic decision implies both: costs and benefits. If we just take the costs in consideration then it is no wonder that this decision has negative perception. That holds true for outsourcing initiatives: The public image of outsourcing is in big part created by media. To be attracted by media, outsourcing initiatives have to have certain size, dimension. Especially those of them attract the interest which large corporations are engaged in and many layoffs are at stake. And that is the point – and if we add to this analysis that the public discussion about outsourcing has mainly its local, national characteristics and it is rather perceived in a short-time perspective, then it is clear why the image is getting negative.
So, if you care what people say, do not outsource, do not cut costs, do not buy competencies third party has. But… – What will you say if the same people ask you why you not let your company grow, cut your costs and introduce innovations?
And the best at the end – how do the executives react on the poor public perception of outsourcing? Very positive actually – that has little to no effect on their (72%) decision to outsource, suggesting the benefits of outsourcing outweigh the potential negative impact from poor public opinion. Moreover, 74% of executives agree that outsourcing helps a company survive in today’s economy. 70% of them feel that money saved by outsourcing can help a company grow, and 60% believe outsourcing makes a company more agile and flexible. These are further results of Capgemini survey mentioned before.
Magdalena Szarafin
http://www.szarafin.info
P.S. The full Capgemini study Outsourcing is Key to Surviving the Downturn can be downloaded from this location.
How do the executives react on the poor public perception of nearshore/offshore outsourcing? What is the reason for outsourcing to have such an image?
Let’s start with the second question first. Every economic decision implies both: costs and benefits. If we just take the costs in consideration then it is no wonder that this decision has negative perception. That holds true for outsourcing initiatives: The public image of outsourcing is in big part created by media. To be attracted by media, outsourcing initiatives have to have certain size, dimension. Especially those of them attract the interest which large corporations are engaged in and many layoffs are at stake. And that is the point – and if we add to this analysis that the public discussion about outsourcing has mainly its local, national characteristics and it is rather perceived in a short-time perspective, then it is clear why the image is getting negative.
So, if you care what people say, do not outsource, do not cut costs, do not buy competencies third party has. But… – What will you say if the same people ask you why you not let your company grow, cut your costs and introduce innovations?
And the best at the end – how do the executives react on the poor public perception of outsourcing? Very positive actually – that has little to no effect on their (72%) decision to outsource, suggesting the benefits of outsourcing outweigh the potential negative impact from poor public opinion. Moreover, 74% of executives agree that outsourcing helps a company survive in today’s economy. 70% of them feel that money saved by outsourcing can help a company grow, and 60% believe outsourcing makes a company more agile and flexible. These are further results of Capgemini survey mentioned before.
Magdalena Szarafin
http://www.szarafin.info
P.S. The full Capgemini study Outsourcing is Key to Surviving the Downturn can be downloaded from this location.
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Tags: Capgemini, Magdalena Szarafin, executive, media, nearshore, offshore, outsourcing, public opinion
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